boating in CT just got more expensive!
 

here the skinny on the new LUXURY TAX:


The CPBA is doing what I can to keep you guys informed.

A response to your question from our Office of Fiscal Analysis. If you have anything further let me know.

Adam Skowera
Legislative Aide to Rep. Backer, Cook, Schofield and Steinberg
Legislative Office Building, Room 4100



--------------------------------------------------------------------------------
From: Arnold, Evelyn
Sent: Thursday, May 05, 2011 5:50 PM
To: Skowera, Adam
Cc: Murphy, Michael; Calandro, Alan
Subject: RE: budget?


The luxury tax was revised to be a 7% rate on the entire cost of the luxury goods, not a marginal rate. So in effect, the tax would be on the entire $100,001. This is different from the Governor’s original luxury tax proposal which was a 3% marginal tax rate on luxury goods. The following table illustrates the $100,001 example with the revised luxury tax.



Cost of Boat
100,001.00

6.35% standard sales tax
6,350.06

plus additional 0.65% (luxury)
650.01

Total Tax
7,000.07





The additional 0.65% tax is essentially the additional tax imposed on luxury goods. So in this example, the customer would pay $6,350.06 related to the standard sales tax and an additional $650.01 that is associated with the luxury tax bump. I apologize for not clarifying the difference in my previous email.



I hope that helps. Please let me know if you have further questions.

Im sure that will help STIMULATE ECONOMIC GROWTH...

A couple of questions...

I assume this is only for the initial purchase and that there is now yearly property tax, correct?

Secondly, this is for goods over $100k. Are they looking at book value, or what's on the bill of sale/purchase price when you go to register the boat?


I need to know very soon so I can decide if my money will be going to CT or VT! :D

This is total horse ****....

No. CT has only passed the 100k luxury tax. The property tax idea was not passed into law. Thats my understanding.

thanks for the info...is my understanding above correct?

Do you know if they charge you sales/lux tax based on book value, or based on the amount on the bill of sale?

it would depend. if you buy the boat through a dealer you will be forced to pay the states sales tax you purchsed the boat in (i.e. CT, VT, etc. if you buy from a private owner you can always agree to and doctor a CT bill of sale. but you didnt hear that from me. (i.e. boat costs 100k and you put 45k) DMV wont know the difference. hahaha

That's what I was wondering. Years ago they were going on book value on cars (dont know if they still are) and if didnt matter what you said you actually paid for something. I didn't know if they are doing the same these days for boats, or if they are just going off the BoS. If you are correct that they are just using the BoS for private party, that could potentially ease the burden of this tax for some folks. ;)

they use bill of sale only. i know because i did it last august.

to be honest, a kbb or blue book doesnt really exist for boats. the price window for boats is so wide that its imposible to track. i.e. i used one book value for my boat to see what kind of deal i was getting. it varied from 45k to almost 80k. not very reliable info. i just went off the market value of what people we asking for them.

DMV WILL know the difference they will charge you RETAIL BOOK VALUE. They did it to me twice with boats. They will send you an amended tax bill in the mail and you will have to appeal it. So pay with certified check and cash, Send the copy of the check to DMV and they might accept it as truth or not. I'm 1-1 in this arguement. They also do this with trucks and cars as well. They have to pay for shaniqua and her 6 kids.

wow thats surprising to hear. i dont want to divulge what i paid or put on my bill of sale but i will just say it was substantially lower. they didnt even blink an eye. interesting.

NADA is the standard most states use for charging book value.
Edit: at least the ones that go by 'book value' do anyway.

That's what I was affraid of.

Anyone else know what CT is doing these days???

You can always register in RI. No sales tax.

I might go that direction if CT wants book value!

I'm with Moses. Never had a problem.

..... from 6 different dudes! :eek::party-smiley-004: None of which have JOBS!!!!

Happened to me once,put a lower value, thought it was fine and 6 months later got a bill in the mail for a whole bunch more.

News tonight stated fact CT is #1 in personal tax rates, They figured 2 out of every 8 hours worked are for Taxes. F'IN BS. They are driving what's left of business out of state.

I really cant answer that question, They are still trying to figure out how things are going to work!

I will stay in touch with them and pose some of these questions for you guys and try to get solid answers but I dont want to throw up any plags and have them LOOK INTO ANYTHING they wouldnt have.

I would guess based on how cars work that book value will be the way its going to go now that they have Tax money at stake and need the funds.



Typical state Government shooting them slevs in the foot with this tax crap. you know how many people will process Ct sales out of state, there will be out of state services making money off this just like there is for cars.

Well, We'll find out next week when I go register my Donzi.